“I don’t see a lot of upside after $29,” says trader Guy Adami in support of Terranova. "But I don't see a lot of downside beyond $26.50."

Those are the gut reactions from two of our top traders after parsing through Microsoft earnings.

Largely the numbers showed profits increased by a greater than expected 30%, helped by strong sales of Microsoft Office software and Xbox game console but also revealed that profit from its core Windows products, fell due to soft personal computer sales.

It's that latter point that emboldens the Microsoft bears.

They say it's another sign of waning growth in the overall PC market - and that's particularly troublesome for Microsoft because Windows comes pre-installed on most PCs.

"All eyes are on Windows and how they are ultimately going to extend this franchise in the future, as the PC business continues to lose share to the tablets," says Josh Olson, technology analyst at money manager Edward Jones.

By the numbers Mr. Softy posted net profit of $5.87 billion, or 69 cents per share, compared with $4.52 billion, or 51 cents per share, in the year-ago quarter.

That easily beat Wall Street's average estimate of 58 cents, according to Thomson Reuters. Sales rose 8 percent to $17.37 billion, ahead of analysts' average estimate of $17.23 billion.

Trader Karen Finerman is much more constructive on this stock. "They had decent revenue growth," she says, and "Bing search was good." She finds valuations compelling.

CNBC Contributor Ron Insana is also positive. "What I like about Microsoft is these one-time ongoing dividends that they like to pay out which are rather hefty and get favorable tax treatment," he says. "To me it's still an interesting stock."

______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

For Joe TerranovaTerranova is Chief Market Strategist of Virtus Investment Partners, LTDTerranova is Chief Market Strategist of Virtus Investment Partners, LTDVirtus Investment Partners Owns More Than 1% Of (ABAX)Virtus Investment Partners Owns More Than 1% Of (AMKR)Virtus Investment Partners Owns More Than 1% Of Building Materials HoldingsVirtus Investment Partners Owns More Than 1% Of (CASS)Virtus Investment Partners Owns More Than 1% Of (CSVI)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (FCFS)Virtus Investment Partners Owns More Than 1% Of (KRC)Virtus Investment Partners Owns More Than 1% Of (LDR)Virtus Investment Partners Owns More Than 1% Of (LHO)Virtus Investment Partners Owns More Than 1% Of (NRCI)Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries LtdVirtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (RLI)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (XLV)Virtus Investment Partners Owns More Than 1% Of (XLP)Virtus Investment Partners Owns More Than 1% Of (XLE)Virtus Investment Partners Owns More Than 1% Of (XLF)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (XLK)Virtus Investment Partners Owns More Than 1% Of (XLU)Virtus Investment Partners Owns More Than 1% Of (SUBK)Virtus Investment Partners Owns More Than 1% Of (WDFC)Virtus Investment Partners Owns More Than 1% Of (YDNT)Virtus Investment Partners Owns More Than 1% Of Domino's Pizza UK & IRL PLC